4 benefits of independent loan agents

May 17, 2023

In periods of market downturn, loans may default – presenting many challenges to lenders. An experienced independent loan agent can provide guidance, resources and expertise to help you maintain momentum during difficult times.

While there are some loan-servicing functions a lender might be able to handle in-house, working with an independent, financially stable partner presents strong advantages. Here are the four top benefits..

 

1. Strength, stability and resources

An independent loan agent with a long-standing, stable financial history provides security and reassurance – especially during times of financial uncertainty. Many loans require evidence of proper policies and procedures, including anti-money laundering (AML) procedures. A large financial institution can provide a SOC 1 controls verification report to attest to this. Proper AML processes are especially important when it comes to the intricacies of loan servicing and the frequency of money movement.

Lenders can also benefit from the vast resources of a reputable provider, including the efficiencies provided by a dedicated team, a global footprint, multicurrency capabilities and a proven business continuity plan.

 

2. Conflict avoidance

Unlike lenders, an independent loan agent isn’t driven by financial considerations. Without a financial interest, loan agents can rely on majority requirements and act as a conduit between the borrower and lender to ensure all rules and regulations are observed.

 

3. Continuance

A loan agent can help with all steps of your transaction from start to finish. That means lenders don’t need to seek out a successor agent when certain financial implications arise.

If a loan entered default, many lenders would need to enlist outside help to coordinate the logistics. With a third-party relationship already in place, the independent loan agent can assist with trade settlements for those who need to exit and help lenders obtain the information they need. Terms on credit agreements might change and lenders might vary, but the loan agent remains in place as a consistent and reliable partner to help administer the plan.

 

4. Expertise and comprehensive services

Independent loan agents bring a wealth of knowledge to the table from their experience with a broad spectrum of companies across a wide variety of transactions, including debtor-in-possession (DIP) financing. From back-office work to administration support, partnering with a loan agent smooths the process for both the lender and borrower. Complete services include:

  • Calculate interest and fees 
  • Maintain the loan register and lender positions and facilitate trades
  • Repository of information, notices, financials, budgets and reorganization plans
  • Maintain and protect collateral for lenders
  • Collaborate with all parties and adhere to bankruptcy court orders
  • File proof of claims and record and process the necessary ballots and votes
  • Gather and organize the lenders through votes of amendments and reorganization of credit through the court to a new plan or exit financing
     

By using a committed loan agent, lenders have more time to focus on lending responsibilities. With the right partner, they can be confident the details of their loan will be administered properly – no matter how circumstances might change or markets might evolve in the future.

 

With a sound financial history and extensive experience servicing loans, U.S. Bank is a trusted and reliable loan agent. Learn more about how we can help you through our comprehensive loan agency services.

Related content

An asset manager’s secret to saving time and money

Case study: U.S. asset manager expands to Europe

What are alternative investments?

Investment strategies by age

How to start investing to build wealth

5 questions to help you determine your investment risk tolerance

These small home improvement projects offer big returns on investment

Webinar: Mortgage basics: Finding the right home loan for you

How to fund your business without using 401(k) savings

Dear Money Mentor: What is cash-out refinancing and is it right for you?

Can ABL options fuel your business — and keep it running?

How to get started creating your business plan

Collateral options for ABL: What’s eligible, what’s not?

ABL mythbusters: The truth about asset-based lending

What’s the difference between Fannie Mae and Freddie Mac?

Changes in credit reporting and what it means for homebuyers

Start a Roth IRA for kids

Are you ready to restart your federal student loan payments?

Programme debt clients want reliable service – no matter where they’re based

What Is a 401(k)?

How to open and invest in a 529 plan

How grandparents can contribute to college funds instead of buying gifts

Emerging trends in Europe: An outlook from multiple perspectives

Investing myths: Separating fact from fiction in investing

4 benefits of independent loan agents

Middle-market direct lending: Obstacles and opportunities

Digital processes streamline M&A transactions

Managing complex transactions: what your corporate trustee should be doing

At your service: outsourcing loan agency work

OCIO: An expanding trend in the investment industry

The unsung heroes of exchange-traded funds

4 questions you should ask about your custodian

Maximizing your infrastructure finance project with a full suite trustee and agent

How to maximise your infrastructure finance project

ESG-focused investing: A closer look at the disclosure regulation

European outlook: Trustee experience more important than ever

How jumbo loans can help home buyers and your builder business

Prioritizing payroll during the COVID-19 pandemic

5 tips to help you land a small business loan

Streamline operations with all-in-one small business financial support

How to establish your business credit score

Opening a business on a budget during COVID-19

When to consider switching banks for your business

What are conforming loan limits and why are they increasing

Evaluating interest rate risk creating risk management strategy

Tech lifecycle refresh: A tale of two philosophies

Beyond Mars, AeroVironment’s earthly expansion fueled by U.S. Bank

High-yield bond issuance: 5 traits lawyers should look for in a service provider

5 financial benefits of investing in a vacation home

7 diversification strategies for your investment portfolio

Can fantasy football make you a better investor?

A guide to tax diversification and investing

Year end tax planning tips

4 major asset classes explained

ETF vs. mutual fund: What’s the difference?

Effects of inflation on investments

Bull and bear markets: What do they mean for you?

Test your loan savvy

Webinar: Mortgage basics: What’s the difference between interest rate and annual percentage rate?

4 times to consider rebalancing your portfolio

A beginner's guide to investing

How do I prequalify for a mortgage?

Can you take advantage of the dead equity in your home?

Webinar: Mortgage basics: How much house can you afford?

Is a home equity line of credit (HELOC) right for you?

8 steps to take before you buy a home

Webinar: Mortgage basics: 3 Key steps in the homebuying process

Webinar: Mortgage basics: Buying or renting – What’s right for you?

How to use your home equity to finance home improvements

Webinar: Mortgage basics: What is refinancing, and is it right for you?

Should you get a home equity loan or a home equity line of credit?

6 questions to ask before buying a new home

What is refinancing a mortgage?

What to know when buying a home with your significant other

Webinar: Mortgage basics: How does your credit score impact the homebuying experience?

What is a home equity line of credit (HELOC) and what can it be used for?

Get more home for your money with these tips

4 ways to free up your budget (and your life) with a smaller home

Is it the right time to refinance your mortgage?

Overcoming high interest rates: Getting your homeownership goals back on track

Money Moments: How to finance a home addition

10 uses for a home equity loan

Is a home equity loan for college the right choice for your student

How to apply for federal student aid through the FAFSA

What to consider before taking out a student loan

Common unexpected expenses and three ways to pay for them

How I did it: Paid off student loans

The A to Z’s of college loan terms

Key considerations for launching an ILP

Easing complex transactions: Project finance case studies

Costs to consider when starting a business

Questions to ask before buying a car

Webinar: Mortgage basics: Prequalification or pre-approval – What do I need?

Your financial aid guide: What are your options?

Interval funds find growing popularity

Top 3 considerations when selecting an IPA partner

A first look at the new fund of funds rule

How liquid asset secured financing helps with cash flow

An investor’s guide to marketplace lending

What is a CLO?

The ongoing evolution of custody: Tips for renewing your custody contract

3 innovative approaches to ESG investing in Europe

How institutional investors can meet demand for ESG investing

What type of investor are you?

Personal loans first-timer's guide: 7 questions to ask

Understanding yield vs. return

Retirement income planning: 4 steps to take

Retirement expectations quiz

What you should know about buying a car

What you need to know before buying a new or used car

Take the stress out of buying your teen a car

How to choose the best car loan for you

Employee benefit plan management: trustee vs. custodian

Practical money skills and financial tips for college students

Co-signing 101: Applying for a loan with co-borrower

What’s a subordination agreement, and why does it matter?

Understanding the true cost of borrowing: What is amortization, and why does it matter?

How to use debt to build wealth

How I did it: My house remodel

Everything you need to know about consolidating debts

Student checklist: Preparing for college

Webinar: Uncover the cost: College diploma

Your quick guide to loans and obtaining credit

Do I need a financial advisor?

4 questions to ask before you buy an investment property

How much money do I need to start investing?

How do interest rates affect investments?

Parent checklist: Preparing for college

Evaluating interest rate risk creating risk management strategy

Start of disclosure content
Disclosures

U.S. Bank Global Corporate Trust is a trading name of U.S. Bank Global Corporate Trust Limited, U.S. Bank Trustees Limited and Elavon Financial Services DAC (each a U.S. Bancorp group company). U.S. Bank Global Corporate Trust Limited is a limited company registered in England and Wales having the registration number 05521133 and a registered address of 125 Old Broad Street, Fifth Floor, London, EC2N 1AR. U.S. Bank Global Corporate Trust Limited, Dublin Branch is registered in Ireland with the Companies Registration Office under Reg. No. 909340 with its registered office at Block F1, Cherrywood Business Park, Cherrywood, Dublin 18, Ireland D18 W2X7. U.S. Bank Trustees Limited is a limited company registered in England and Wales having the registration number 02379632 and a registered address of 125 Old Broad Street, Fifth Floor, London, EC2N 1AR. Elavon Financial Services DAC (a U.S. Bancorp Company), trading as U.S. Bank Global Corporate Trust, is regulated by the Central Bank of Ireland. Registered in Ireland with the Companies Registration Office, Reg. No. 418442. The liability of the member is limited. Registered Office: Block F1, Cherrywood Business Park, Cherrywood, Dublin 18, Ireland D18 W2X7. Directors: A list of names and personal details of every director of the company is available for inspection to the public at the company’s registered office for a nominal fee. In the UK, Elavon Financial Services DAC trades as U.S. Bank Global Corporate Trust through its UK Branch from its establishment at 125 Old Broad Street, Fifth Floor, London, EC2N 1AR (registered with the Registrar of Companies for England and Wales under Registration No. BR020005). Authorised and regulated by the Central Bank of Ireland. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.

All banking services are provided through Elavon Financial Services DAC. U.S. Bank Global Corporate Trust Limited and U.S. Bank Trustees Limited are Trust Corporations and not banking institutions and are not authorised to carry on banking business in the United Kingdom, Ireland or any other jurisdiction.

U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments, Inc.